Financial setbacks hurt. They are not uncommon and happen for many reasons. If this has happened to you or someone you know it is important to know that you can rebuild. 15 years ago, a new client appeared on our doorstep seeking advice on how to get back on his feet. We love this story as it is a pin up case study on the benefit of a financial planner and a disciplined client working together.
Sam walked into our office, newly divorced and feeling overwhelmed as to how he was going to rebuild. His previously strong financial nest-egg was significantly diminished, and he was concerned about how he was ever going to be debt free again, let alone have enough money to retire.
In cases like these there are some important steps you need to take:
Get yourself in the right headspace
Accepting where you are and then refocusing with determination is an essential first step in any financial re-build. Sam had the ability to work hard and make money but most importantly he had a strong will to recover his financial security.
Seek advice from someone you trust
When Sam came to us he was confident that he knew how to make the money but he didn’t know what to do with it. He needed a plan and professional advice from someone he trusted. After listening to Sam, it was clear that his goal was to be mortgage-free and financially independent in 15 years’ time. We came up with a plan to help him get there which included significant salary sacrificing into super and putting any excess cash into paying down his mortgage. We also suggested Sam increase the amount of risk he was used to, given the shorter time frame in which he had to rebuild.
Be committed to implementing the plan
It was Sam’s diligence that ensured our plan was a success. He made considerable lifestyle sacrifices and took a job offshore so that he could maximise his earnings. His commitment included checking in with us every six months so that we could re-adjust and work with any changed circumstances or challenges, such as market fluctuations.
Sam is now retired and debt free. He is about to head off on a trip around Australia. As financial advisers, stories like these motivate us to get out of bed every day. It is why we do the job we do. If you or anyone you know needs help, get in touch.
General Advice Warning: The information provided in this article is general in nature and does not consider your particular investment objectives, financial situation or insurance needs; we therefore recommend you seek advice tailored to your individual circumstances before making any specific decisions.
Dobbrick Financial Services (Gympie) Pty Ltd ABN 48 931 205 109 & DFS Oakland ABN 64 340 527 395 and their advisers are authorised representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306. DFS (Ipswich) Pty Ltd ABN 86 100 184 521 and their advisers are authorised representatives of Fortnum Private Wealth LTD ABN 54139889535 AFSL 357306.
